The Rt Hon Kwasi Kwarteng MP 

Secretary of State for Business, Energy and Industrial Strategy 

Department for Business, Energy and Industrial Strategy 

1 Victoria Street 

London, SW1H 0ET 

Dear Secretary of State, 

Deb relief orders consultation 

I have been contacted by a number of constituents who have concerns regarding Debt Relief Orders (DROs) and the debt crisis more widely and I am asking for a review of DROs. The Money and Pensions Service has estimated that there are three million additional people who will need debt advice this year due to the COVID-19 pandemic on top of the five million other households who were already overindebted. 

The Government has been consulting on changes to the monetary eligibility criteria for DROs, with a proposal to increase the total amount of debt allowable under a DRO to £30,000, the value of assets an individual can own and be eligible to £2,000 and the level of surplus income allowed to £100 per month.  

While I welcome these changes I support further, more generous changes that would increase eligibility still further and enable 92% of those currently excluded by the debt limit to access a DRO. Please support the following changes:  

• Additional pre-existing debts should be allowed to be scheduled in the DRO 
• The vehicle value threshold should be increased to £2,000 and mobility scooters excluded  

• Increasing the DRO limit to £50,000 and  
• The Insolvency Service should commit to regular reviews of the DROs eligibility criteria at least once every three years.  

I look forward to your response.  

Sincerely,  

Fleur Anderson 

Labour Member of Parliament for Putney, Roehampton and Southfields 

Shadow Minister for the Cabinet Office 

House of Commons, London, SW1A 0AA